Bill > SB0262

This bill amends the State Employees' Retirement Act to modify retirement options and contributions for state employees in Tier 2 of the retirement system. The bill introduces several key changes, including expanding annuity options by requiring the investment board to select annuity providers through a competitive process with specific financial and service criteria. For certain employee categories like conservation officers and state police, the bill allows for graduated contribution rates based on years of service, ranging from 6% to 10% of compensation with matching employer contributions. The bill also clarifies investment options, allowing participants to direct their accumulated contributions to various investment choices and introducing fixed and variable annuity options. Additionally, the bill updates provisions related to service credit, including crediting full service for furlough hours, military duty, and other specific circumstances. The changes aim to provide more flexible retirement planning options for state employees while establishing more detailed guidelines for contribution rates, investment choices, and annuity providers. The bill applies specifically to Tier 2 participants, which generally includes state employees hired after a certain date or who have elected to join this tier of the retirement system.

Labor and Employment

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0262